Name and Location
Tete pig iron and ferrovanadium project, Mozambique.

Client
Baobab Resources.

Project Description
A prefeasibility study completed on the Tete project has confirmed a strategic asset of global significance based on a one-million-ton-a-year pig iron operation with a mine life of 37 years. This will result in the development of 110-million tons of ore – 15% of the total 727-million-ton resource, 553-million tons of which is defined to be underlying the 2.5 km2 footprint of the Tenge/Ruoni prospect. This highlights the opportunity for expanded production scenarios of two- to four-million tons.

The proposed one-million-ton-a-year pig iron production will result in about 25 000 t/y of vanadium slag by-product, with 3 300 t/y contained vanadium or 5 900 t/y vanadium pentoxide. At a vanadium recovery rate of 78%, this equates to a potential final contained vanadium capacity of 2 590 t/y.

Titanium from the slag is technically not proven and not considered an option at this stage of the project.

The modular character of the plant equipment supports a staged development model, thereby limiting initial financial exposure.

Value
The base-case scenario of one-million tons a year of pig iron production estimates a capital expenditure of $1.14-billion.

Duration
Not stated.

Latest Developments
A definitive feasibility study on the project is under way.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Baobab Resources, tel +61 8 9430 7151, fax +61 8 9430 7664 or email info@baobabresources.com.